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Britain's FTSE inches up in choppy trade; miners fall

Thu, 08th Mar 2018 09:59

(For a live blog on European stocks, type LIVE/ in an Eikonnews window)

* FTSE 100 up 0.15 pct, helped by defensive stocks

* Miners fall as trade war worries hit metal prices

* Upgrade boosts AB Foods; Aviva down after mixed update

MILAN, March 8 (Reuters) - The UK's top share index inchedup in choppy trading on Thursday as falling metal prices hitheavyweight commodity stocks, although gains in defensive sharesand an upgrade to AB Foods provided support.

Big mining stocks BHP Billiton, Anglo Americanand Antofagasta were among the top fallersafter metals prices lost ground as U.S. trade tensionsovershadowed strong February export data from the world's secondlargest economy, China.

"This morning's Chinese trade data are only likely toreinforce the U.S. administration's perception of unfair trade,"CMC Markets chief market analyst Michael Hewson said in a note.

Losses in mining stocks were offset by gains in drugmakersand consumer companies as investors sought refuge in defensivestocks before U.S. President Donald Trump details his tariffplans, expected on Thursday or Friday.

The FTSE moved in and out of positive territory andwas up 0.15 percent by 0948 GMT. The index is down nearly 7percent year to date, making it one of the worst performersamong European indexes.

AB Foods led gainers on the FTSE on Thursday, up1.7 percent following an upgrade to 'buy' from Goldman Sachs onexpectations a weak dollar would underpin its profit recovery.

Rolls Royce built on Wednesday's rally after UBSraised its price target on the stock. The engine maker rose morethan 11 percent in the previous session after its turnaroundplan boosted profit by more than expected.

A big mover was mid cap Countrywide after adisappointing update.

Its shares tumbled 12 percent as Britain's largest estateagency scrapped its dividend after poor performance in its mainsales and lettings business drove full-year core earnings down22.5 percent.

Aviva fell 1.6 percent. The insurer reported a 2percent rise in operating profit and said it planned to return500 million pounds to shareholders. KBW analysts described theresults as a "mixed bag".

Still in earnings, pizza delivery firm Domino's Pizzarose 2 percent following a better-than-expected 10.2percent rise in its full year pretax profit.

Soft drinks company Britvic rose 6 pct after MorganStanley upgraded it to 'overweight', saying the price offers anattractive entry point.(Reporting by Danilo MasoniEditing by Catherine Evans)

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